Stan's Job Placement Services provides a group disability income policy to all employees. Premiums are paid in part by the employees. Of the following statements, which is true?

Stan's Job Placement Services provides a group disability income policy to all employees. Premiums are paid in part by the employees. Of the following statements, which is true?



a. Benefits are not taxable.

b. Benefits are taxable to employees based on the portion of the premiums paid by Stan.

c. Premiums are 100% tax-deductible.

d. None of the above



Answer: b. Benefits are taxable to employees based on the portion of the premiums paid by Stan.

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